The Government of Guyana on Friday flexed its muscles, yanking the contract from local firm Dax Contracting Services, which  was

Minister of State, Joseph Harmon and owner of Dax Contracting Services Faizal Mohammed along with E-Government Adviser Floyd Levi in the meeting on Friday

tasked with rehabilitating and maintaining the controversial Fibre-Optic Cable that is expected to be used to transmit data for the State’s E-Governance System. The previous People’s Progressive Party/Civic (PPP/C) Administration had come under heavy criticism for handing the company the contract earlier this year. However, during a meeting on Friday, Minister of State, Joseph Harmon, met with the owner of the company, Faizal Mohammed, called “Dax”, and terminated the contract. This was done in the presence of E-Government Adviser Floyd Levi. Despite being one of the previous Government’s critics of the E-Governance Project while in Opposition, the A Partnership for National Unit/ Alliance For Change (APNU+AFC) coalition has decided to move ahead with the project. In the statement from Minister Harmon’s office, it was outlined that Mohammed was informed during the meeting that a team of telecommunications experts were commissioned to review the Fibre-Optic Cable laying project that was overseen by former Project Manager Alexei Ramotar, the son of former President Donald Ramotar. “Minister Harmon informed that all works by Dax was to be halted while the team does its work. Upon completion of the review, the team will report on the project execution, the amount of money expended, the performance of contractors and consultants; they are also expected to advise Government on the possible utilisation of the cable and on the way forward,” the statement further detailed. It went on to say that the Minister of State assured Mohammed that he would be fairly treated for whatever “measured works” he would have accomplished in fixing parts of the cable. The previous Administration was heavily criticised for the “sweetheart deal” it had given to Dax Contracting Services during its last days in office. In exchange for repairing the cable, Dax was given 40 years of exclusive use of portions of the cable along with duty-free concessions for SUVs and four-door pick-ups as well as tax holidays. Head of the Presidential Secretariat under the previous Government, Dr Roger Luncheon had defended Government’s decision on the contract, stating that it was more cost-effective as oppose to borrowing between US$20 to US$30 million to have it repaired. Dr Luncheon told media operatives that there was no need to invite bids to contract a company since his Government wanted to find an entity to do the rehabilitation works without spending money. As part of the deal also, Dax Contracting Services was given several of the 12 pairs of cable; however, the company was not allowed to provide telecommunication services. The contract had a lifeline of 25 years, but the company had the option of extending it for a further 15 years. The PPP/C Administration has expended some US$4.5 million on laying the cable from Lethem through the interior to Georgetown.